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Capital Receipt

Capital Receipt

Capital receipt is one which is invested in the business for a long period. It includes long term loans obtained from others and any amount realised on sale of fixed assets. It is generally non-recurring in nature.

Characteristics

i. Amount is not received in the normal course of business.

ii. It is non-recurring in nature.

Examples

i. Capital introduced by the owner

ii. Borrowed loans

iii. Sale of fixed asset

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